Often, the rights of use to trademarks, samples or designs and, for example, also recipes in addition to the provision of know-how are an important partthe franchiser services. Franchisors can grant local, regional and international licenses. Often the licenses go hand in hand with territorial protection .

Before the opening of a franchise business is the conclusion of the contract of the franchisee (still interested) with the franchisor. The franchisee is faced with the task of examining comprehensive contracts and deciding whether the agreements contained therein can be expected to lead to a good and lasting business partnership . There are central regulatory areas that may not be missing in any franchise agreement.

Franchise contracts are usually very extensive, because for every detaila clear regulation should exist. Before the actual franchise agreement is concluded, it is usually customary for letters of intent to be concluded. These are often accompanied by the advance payment of protection fees or deposits on the entrance fee. In this way, the franchisors protect themselves from know-how abuse and thus usually recognize the seriousness of the prospective customer.

Example of a time line until the contract is concluded

Selection and first discussions, possibly already with presentation of the system in live operation